The Use and Representational Faithfulness of Graphs in Annual Reports: Australian Evidence
Paul R. Mather, Alan Ramsay, Alan Serry · Australian Accounting Review · 1996
Effective communication of information using graphs depends on the graphs being constructed so that they faithfully represent the underlying data. If certain principles of graphic construction are violated, graphs will be distorted and may mislead users of financial statements. The paper develops and tests hypotheses concerning the relationship between the use and construction of graphs in the annual reports of companies and the performance of those companies.